Piedmont REIT Signs over 500,000 SF of Leases Second Quarter-to-Date and Raises Full Year Leasing Guidance from 1.4 - 1.6 million SF to 1.8 - 2.0 million SF

Rhea-AI Summary

Piedmont Office REIT (NYSE:PDM) reported strong leasing activity with over 500,000 square feet of leases signed in Q2 2025 to date, including 350,000 square feet from new tenants. Year-to-date leasing volume has reached 850,000 square feet, with 70% of new tenant leases for vacant space. Notable transactions include a 93,000 SF lease with a global professional services firm in Dallas and an 84,000 SF lease with a frozen food distributor in Minneapolis, both exceeding 10-year terms. The company has raised its 2025 leasing guidance from 1.4-1.6 million SF to 1.8-2.0 million SF. Currently, PDM has over 400,000 SF of leases in legal documentation and 2.6 million SF in the proposal stage, demonstrating strong demand for their Class A office properties despite economic uncertainties.

Positive

• Over 500,000 SF of new leases signed in Q2 2025 to date, with 350,000 SF from new tenants
• Secured two large 10+ year lease commitments totaling 177,000 SF
• Strong pipeline with 400,000 SF in legal documentation and 2.6M SF in proposal stage
• Increased 2025 leasing guidance by 400,000 SF to 1.8-2.0M SF
• 70% of new tenant leases are for currently vacant space, reducing vacancy rates

Negative

• None.

Insights

Commercial Real Estate Analyst

Piedmont REIT's significant leasing momentum and raised guidance signal strong demand for premium office space despite market headwinds.

Piedmont's 500,000+ square feet of Q2 leasing activity represents a significant acceleration in space absorption, with 70% of new tenant leases filling previously vacant space. This robust performance has prompted management to increase their 2025 leasing guidance by 400,000 square feet at the midpoint (from 1.4-1.6M to 1.8-2.0M SF).

The two highlighted long-term leases—93,000 SF in Dallas and 84,000 SF in Minneapolis—are particularly valuable as 10+ year commitments provide substantial tenant stability and reduce future re-leasing risk. The Minneapolis deal validates Piedmont's property repositioning strategy, demonstrating the company can attract quality tenants to refreshed properties.

Perhaps most telling is that 400,000+ SF of leases currently in legal documentation and a substantial 2.6 million SF in the proposal pipeline indicate no slowdown in office demand despite economic uncertainties. This contradicts broader market narratives about office space obsolescence and suggests Piedmont's Sunbelt-focused, amenity-rich portfolio is resonating with corporate tenants seeking quality workspaces.

The company's ability to attract a diverse tenant base—from professional services to food distribution—demonstrates cross-sector appeal. With approximately 850,000 SF leased year-to-date, Piedmont appears well-positioned to exceed even their newly raised guidance if current momentum continues through year-end.

YTD Leasing of over 850,000 SF

Atlanta, June 02, 2025 (GLOBE NEWSWIRE) -- Piedmont Office Realty Trust, Inc. ("Piedmont” or “the Company") (NYSE:PDM), an owner of Class A office properties located primarily in the Sunbelt, announced today, that the Company is participating in this week’s Nareit REITWeek Investor Conference in New York City. The Company has completed over 500,000 square feet of leasing thus far in the second quarter, with 350,000 square feet related to new tenants. Approximately 70% of the new tenant leases are for currently vacant space and year-to-date leasing volume now totals over 850,000 square feet.   Of note, the Company signed two new, large transactions in excess of 10 years – 93,000 square feet with a global professional services firm specializing in risk, strategy and people at Three Galleria Office Tower in Dallas and 84,000 square feet with a global frozen food distributor at the Company’s recently repositioned 9320 Excelsior building in suburban Minneapolis.

Commenting on second quarter operational success to date, Brent Smith, Piedmont's President and Chief Executive Officer, said, "The portfolio’s leasing momentum accelerated during April and May with the team executing over half a million square feet of leases despite the turbulent economic backdrop. To date, we have not witnessed a slowdown in leasing demand or decision making.   Piedmont’s client pipeline remains robust with over 400,000 square feet of leases currently in legal documentation with more than half for currently vacant space. In addition, we have 2.6 million square feet of leases in the proposal stage, further evidence that the investments that we have made in our portfolio, combined with a 'best-in-class' service and sustainability mindset, are resonating with a broad range of tenants. At this time, we are increasing our 2025 leasing guidance to 1.8 to 2.0 million square feet from our initial guidance of 1.4 to 1.6 million square feet. We continue to emphasize that Piedmont is uniquely positioned to capitalize on the growing demand for highly-amenitized, well-located work environments operated by a financially stable landlord."

About Piedmont Office Realty Trust

Piedmont Office Realty Trust, Inc. (NYSE: PDM) is an owner, manager, developer, redeveloper, and operator of high-quality, Class A office properties located primarily in the Sunbelt. Its approximately $5 billion, predominantly unencumbered portfolio is currently comprised of approximately 16 million square feet. The Company is a fully integrated, self-managed real estate investment trust (REIT) with local management offices in each of its markets and is investment-grade rated by Moody’s (Baa3) and Fitch (BBB-). Piedmont is a 2024 ENERGY STAR Partner of the Year – Sustained Excellence. For more information, see www.piedmontreit.com.

Contact:      Sarah Heimlich
Company:   Piedmont Office Realty Trust
Phone:        770 418 8800
Email:          Investor.relations@Piedmontreit.com

FAQ

What is Piedmont REIT's (PDM) new leasing guidance for 2025?

Piedmont REIT has raised its 2025 leasing guidance from 1.4-1.6 million square feet to 1.8-2.0 million square feet.

How much leasing volume has PDM achieved year-to-date in 2025?

Piedmont REIT has achieved over 850,000 square feet of leasing volume year-to-date in 2025.

What major leases did Piedmont REIT sign in Q2 2025?

PDM signed two major leases: 93,000 SF with a global professional services firm in Dallas and 84,000 SF with a global frozen food distributor in Minneapolis.

What is Piedmont REIT's current leasing pipeline?

PDM has over 400,000 SF of leases in legal documentation and 2.6 million SF in the proposal stage.

What percentage of PDM's new tenant leases are for vacant space?

70% of Piedmont REIT's new tenant leases are for currently vacant space.